A recent story in the Grand Rapids press, (Saturday, October 13,2007) caught my attention. The title of the article by Chris Knape was "Amway Sues Bloggers" with a subtitle that said..."company alleges fired distributor is behind negative web posts, videos."
The paper reports that the suit has been filed by Quixtar, the on line version of Amway also known as Alticor Corporation. Quixtar is asking the court for an injunction and $25,000 in damages against 30 alleged anonymous bloggers classified in court documents as John Doe's.
In addition, the corporation is asking the court to approve subpoenas for IP address from companies such as godaddy and Youtube (owned by Google) to reveal the identities of the alleged offenders.
Apparently, the derogatory posts regarding the company were filed anonymously. But the company alleges that it believes that the posts are a concerted effort by a former disgruntled distributor to undermine a court order in which he agreed not to disparage the company. The article indicates that Amway is not seeking to restrain an individuals right to free speech or criticism. Rather, they are seeking to ferret out any attempts to circumvent restraints imposed by the courts.
This may turn out to be a true battle of the giants vs 30 mini Davids! It will be interesting to watch how this case proceeds. The nature of Web 2.0 platforms creates a real dilemma for corporations. On the one hand, tools such as blogs can greatly enhance the reach of information about products and services. The flip side of the coin is that negative information can be magnified with astonishing speed and pervasiveness as well. Every public relations specialists knows that managing a deluge of negative publicity can be worse than trying to harness the wind.
As blogging encompasses more of the business community, real estate companies will also need to consider the implications for their business models. Managing risk will rise higher on the agenda and insurance companies will eventually consider the potential implications from an Errors and Omissions standpoint. On line posts have a shelf life of...well, you might say...Forever!
Today, certain types of public discussions within the real estate industry are highly regulated. We cannot, for instance, discuss commissions unless we want to run the risk being accused of collusion and price fixing. Federal law and the Code of Ethics subscribed to Realtors® precludes us from discriminating in any medium in a wide variety of ways which include: race, familial status, sex, handicap, marital status, place of origin, etc.
There are no simple solutions here. The reality today is that some of the most effective new mediums of information about homes are not controlled by real estate associations. But, these companies are providing forums which the public wants in the form of quick, readily available complete information which allows for easy interaction between the buyer and the seller on line. This emerging dynamic will impact the discussion in many ways. Organizations such as Google, Zillow and Trulia are not bound by the dictates of NAR.
Within the context of a challenges which have defined the recent real estate market, the knowledge that the competent broker brings to the table with reference to strategic counsel and negotiations remains vitally important. The nature of blogging and other forms of Web 2.0 marketing can greatly enhance the potential impact and reach of intelligent opinion. This will be where the rubber squeals against the pavement. How does one balance this incredible potential with the enormity of the associated risks? AND...live with the knowledge that if you sit this one out...your competitors probably won't!
The challenge for real estate brokers will be figuring out how to manage the risk and create the accessibility which the consumer craves. The problem for NAR will be figuring out a comprehensive policy which adapts to a future wave of such enormous consequence that it is scarcely possible to predict how it will crash against the shoreline. Failure on either count is a high stakes game...perhaps, literally the survival of our industry as we know it.
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Lola Audu, is the Designated Broker & Owner of Audu Real Estate. Our company specializes in helping people buy and sell homes in the greater Grand Rapids, West Michigan area. You can contact us via e-mail @ info@auduhomes.com or by phone at 616-791-0511. Thanks for visiting our blog. Here are links to some of our most popular posts for you to enjoy!
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Good thoughts, Lola, as usual. It will be interesting to see what precedents are set.
Actually, I think we're accountable for every single word in our blogs now. People may not be suing me, but they are forming opinions about me with every post and every comment.
Lola, The other posts WooHoo Sally mentioned did not touch on the E&O issue. You got it exactly right. The real threat to blogging is not some edict from NAR but rather a pronouncement from the insurance industry that blogging will invalidate an Errors and Omissions policy or at the very least they won't insure against risks attributed to blogging.
Bill Roberts
Katerina, Thanks for your comment. I was intrigued by how careful Amway was to point out that they are not trying to curtail free speech. Right now, this would not be a popular route. But, this could very easily and quickly change. An event like 911 demonstrates how rapidly rights that we believe to be set in stone can be retooled. We're living in very interesting times.
Hi Missy, I did read Monika's post and also her first one on this issue. This year NAR launched it's own official blog featuring our current President Pat Combs. We all received an e-mail notification about it. They are aware of the implications of this emerging phenomenon and certainly have access to information resources for advise.
I don't think this issue for the real estate community will be simply about what NAR does. Web 2.0 technology is going to change business everywhere in a multi-faceted way...real estate included. And...the biggest changes may be coming from outside our industry...not within it. I'm struck by the fact that the graphic to enter this comment is quinine. This may be a bitter pill to swallow. :)
With reference to my agents as a broker...I am a firm beliver in the power of knowledge and education.
Lola,
This is one that will be watched closely, I'm sure. I wonder if there's precedent for trying to get the names of anonymous bloggers. You are so right though, blogging is serious. I imagine there are so many people who believe it's just between the community in which it's written. It's so much more than that and a case like this will surely make that blatently obvious. We are held accountable for what we say, and post it seems. Thanks for the informative post.
I've read comments and posts by members that say "nobody is paying attention to what's written here". I think that's dead wrong. We all preach the benefits of blogging and try to convert others to its value, but the double-edged sword is this: now, all sorts of people are paying attention to what goes on in blogs, including the government, private companies and competitors.
Claiming "Free speech" does not protect you from being sued if a party can somehow prove that they've been harmed monetarily by your comments.
Lola this is an excellent article! You stated so eloquently what I was trying to convey in my post yesterday. However, I had not thought of the E & O angle. That could certainly make brokers stand up and listen. NAR can only pass guidelines E &O can hit us in our wallets real quick.
I think one way to balance the risk factor is to make sure we know what we are talking about when we throw it out there for the world to see. We also have to expect and be prepared for criticism. I'm a big fan of transparency. I have nothing to hide. Maybe this new "openness" will help in making the world a better place.
Lola, excellent well-written article. The E&O issue is very thought provoking and as was mentioned, may come into play moreso than any dictates by the NAR. I've always felt that the best way to judge what I put into my articles is how would I feel being faced with the post in front of an arbitration board.
Hi Steve....It caught a lot of people's attention! The Internet can be a very vicious place to air grievances. That's one of the reasons why it's important to have google alerts so that you are aware of what is being said. Being able to identify someone who says it anonymously is...well, an altogether more complex and challenging issue.
Hi Beth...thanks for your comment...LOL Not a bad rule...at all! :)
Thanks for your comment Jeffery.
Yes, Michael. Thanks for stopping by.
all the recent comments regarding how NAR and our brokers will deal with the blogging caught me a little off guard and I was thinking about interference with my right to free speech.
Then today I was at an event hosted by our Multiple Listing Service and was invited to "blog" on a site created and hosted by our Board and MLS.
How refreshing!
Lola,
I agree with the first comment right off the bat! First this is a GREAT! post! Awesome information and about a Michigan Big Boy too. Hay aren't they in your neck of the woods too? :) Way to keep it local and International all the same time!
I think that this has been attempted before but I will have to do some research first. As far as the company I will be watching this very very close. Where they have a difference as I remember is in already standing court orders. I will look around some because now you have me wondering!
I also agree with the fact that it is a company speaking. I try very hard to make sure I really think about what My Company Is Saying before I hid the send button because you are right the shelf life is forever!
Thanks for the post as it really has been one of the better reads this week for me.
Lisa,
A little while back they kind of sold themselves to themselves. The Q company is an Internet based company that now owns the product producer portion that is Amway. It is kind of confussing but they are the same just a different sales system using direct shipment. The reps could/would not stay on because of the inventory cost so they went with a different system.
Thanks for your comment Tim.
Gail, Your comment made me go to your profile to find out which state you are in! How refreshing...a local Board creating a platform for their agents to blog. That's the first time I've heard of that!
Shane, Appreciate your stopping by. Yes, Amway is right here in Grand Rapids, Michigan. Never thought that we'd have front row seats....
Hi Jennifer, Thanks for your comment. NAR has an interesting and challenging task. It will be interesting to see if they do make recommendations in their meeting in November. We'll have to wait and see...
Joan, You're so right. Sometimes, I think people think that because they are behind a screen, they are not seen. Nothing could be further from the truth. In some ways, the Internet and the digital revolution has enabled the most Transparent environment the world has ever know.
Excellent post. The perspective of a changing Real Estate Industry is the most important part for me. The fact that there are more and more companies providing services, which are not affiliated to NAR and at the same time we are getting closer to actually eliminating the last bastion of the exclusivity (MLS the way we know now) that is heavily protected by NAR, and this is changing the paying field for agents.
Thanks.
Mmmmmm. It appears that the Internet just ran into some - what do we call those things??? Oh, yes, human beings.
I know we've heard it before but it needs to be repeated - again and again - "The more things change, the more they stay the same."
Disgruntled former employees are nothing new, they've simply taken their grievances, committed them to writing and spread them over the waters where their grievances are taken to the four corners of the earth.
No more do folks with real or perceived grievances have to limit their "pay back" to spreading the word one ear at a time. They now have the world at their fingertips. Amway should probably have just ignored the matter and it could have blown over.
You wrote: "Google, Zillow and Trulia are not bound by * * * * " the dictates of the anti-trust constraints as are we agents and brokers. True, but they are simply the virtual paper upon which a live member of the NAR has committed their writings. That live member IS being watched and read by the FTC and the DOJ. '
I do not believe that the average agent understands that discussions of commissions between agents or brokers of different companies is illegal. How to you stop folks who live in their own little world and who don't read and learn from harming themselves and those around them????
Lola,
Many people think they can write ANYTHING and get away with it on the internet. Not necessarily so. Your post was very interesting.
Bob & Carolin...Thanks for stopping by to read and comment.
Hi Joe, The playing field has already changed for everyone...the dust is not settled yet, so it's difficult to truly understand and comprehend just how much...
Yes, Diane...the Internet can be a suprisingly transparent medium.
Agreed on both points Teri. Thanks for stopping by to read and comment.
Lola - once again you raise some important issues that the industry faces as the on-line world continue to grow and evolve - liability, free speech and so on. Consumers growing demands will continue to inspire other means to provide what they want. Bloggers, I think forget that their writing exists for all to see, whether they like it or not, and any transgressions are in writing...great evidence for attorneys to use in legal proceedings. I expect we will see more issues raised and tested in court as more and more communication, and even transactions, occur on-line.
Jeff
Lola,
YES this will be a VERY interesting case to watch. I have been "bullied" by someone that did not like something I said about the Home Staging industry in general.
Blogs are a unique media? Or are the not media, are they our on-line voices?
Keep us posted.
Me